Amid TCS Layoffs, Infosys Commits to Hiring 20,000 Freshers in FY26

Days after Tata Consultancy Services (TCS) announced the layoff of 12,000 employees, affecting mid-level and senior-level staff, as part of its strategy to become more agile and future-ready, Infosys — India’s second-largest IT firm — has revealed plans to hire 20,000 freshers in the financial year 2025–26.

The announcement is noteworthy at a time when the global tech industry is undergoing a major transformation driven by artificial intelligence (AI).

In recent interviews, Infosys CEO Salil Parekh reaffirmed the company’s commitment to hiring targets, stating that Infosys has already onboarded 17,000 employees this year. He emphasized the company’s focus on investing in AI and reskilling its workforce to improve operational efficiency.

“We’ve made significant investments in digital and AI — building agents, language models, and reskilling employees. This allows us to allocate more people to new projects,” said Parekh. “Our strategy is geared towards enhancing efficiency and staying aligned with evolving market demands.”

Parekh also announced that Infosys has raised its revenue growth guidance for the current fiscal year — from an earlier range of 0%–1% to a revised estimate of 1%–3% in constant currency — signaling the company’s confidence in its strategic direction and market positioning.

Infosys’ announcement comes as a glimmer of hope for engineering graduates and job seekers, amid widespread layoffs across the tech sector.

TCS, once seen as the IT equivalent of a stable government job, has now joined the list of tech giants announcing significant workforce reductions. Globally, major companies such as Meta, Google, Microsoft, and Intel have also slashed thousands of jobs in recent months.

While some companies have cited restructuring needs, many have pointed to AI adoption as a key reason for job cuts.

In a recent memo to employees, Microsoft CEO Satya Nadella acknowledged the company’s strong financial performance but explained that the layoffs were part of a broader transition toward AI-driven automation.

Notably, Microsoft reported a staggering $75 billion in net income over the last three fiscal quarters, and its stock has surged 21% this year, hitting record highs above $500 per share. This juxtaposition — strong profits amid job losses — sparked criticism and concern.

Describing the paradox, Nadella called it “the enigma of success in an industry that has no franchise value,” adding that progress is rarely linear: “It’s dynamic, sometimes dissonant, and always demanding.”

Justifying Microsoft’s decision, he noted that future success will depend on the company’s ability to “go through this difficult process of unlearning and learning.”

Further, he urged remaining employees to maintain a “growth mindset” amid what he called the “messiness of transformation.”

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